Real Estate Trends – Lowell, Massachusetts (Multifamily)

Introduction:

In this real estate market trend report we are going to once again take a look at multifamily properties.  This will be our second consecutive report looking at a multifamily market following our report on Brockton Multifamilies last week.  If you are here for the first time what we do in these reports is examine a city or town in Massachusetts or New Hampshire and its year over year real estate market trends.  Then we look at those observations and analysis what they mean going forward.

Today we are highlighting the multifamily market of Lowell, MA in Middlesex County.

Lowell City Hall - Lowell MA Real Estate

We took a look at Lowell’s single family market back in December, and plan on revisiting this market soon.

 Market Trends in Lowell, MA – January 2014 and 2015:

The Lowell, MA multifamily market is down slightly since last year.  Both the listing and sales prices are down somewhat.  The days on market are up a fair amount though.  Inventory was pretty steady with 10 sales in January of 2014 and 11 in January 2015.

Average Listing Prices:

As always we will first take a look at the average listing price.  For Lowell, MA multifamily properties the average list price was $240,420 in January 2014.  This went down to $231,535 in January 2015.  This gives a slight decrease of 3.70%.

Average Sale Prices:

Next we look at the average sale prices.  For January of 2014 the average sale price for a Lowell, MA multifamily was $232,190 and in January 2015 that was down just a tad to $229,444.  That would be a smaller decrease of 1.18%.  This is a pretty tiny difference.  Since the actual sale prices are falling less than the list prices this could indicate that local agents have seen the market has slowed down and have been able to compensate accordingly.

Average Days on Market:

Finally we look at are the days on market.  The days of market are a measure of how long it is taking for a house to sell in the market.  For Lowell, MA multifamily properties the average days on market in January of 2014 was 54.3 and the average days on market for January 2015 were 96.55, for a pretty large 77.8% increase. However, as we have seen in many of our previous posts for the municipalities of Abington, BedfordSeekonk, Belmont, Topsfield, Canton, Dracut (Condos)Hamilton, Wakefield, Amesbury (Condos), Dracut #2, Taunton, Reading, Stoughton , Wrentham, Stoneham, Dedham, Nashua, NH , Tewksbury and Brockton (Multifamily) outliers can skew the data.  This also happens to be the case here for Lowell, MA multifamily properties as well.  In this instance it is the 2015 data that is skewed.  We will see that this makes the increase we see less dramatic. In 2015 there was one place that was high at 303 days; this was close to double the next highest one.  When we remove this point the other 10 houses were left with an average of 75.9.  Using this instead we see that the increased is now 39.78%.  So either way the days on market were up a lot but if we use the adjusted number they are up less.

Lowell, Mass Summary:

The Lowell, Massachusetts multifamily real estate market has been pretty stagnant since last year.  The small declines in both listed and sale prices to seem to signal that things might be heading downward.  The significant increase of the days on market also support observation even more since that indicator has changed more.  While prices are only a little less than flat if the days on market keep increasing that usually is followed by lower prices as well. In summary if you are looking to sell a multifamily house in Lowell, MA now you should expect to get about the same of maybe a little bit less for it than you would have last year.  You also should also be willing to take a discount off of your initial price to avoid sitting on it for a longer time.

 

Do you need to sell your Lowell, Massachusetts multifamily house fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

Please share your questions and comments below.      

 

 

(Image credit: Lowell City Hall by EMW via Wikipedia)  

 

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